18 TAN SRI LIM WEE CHAI
Flagship: Top Glove Corp Bhd Net worth: RM3.79bil WITH a 53% higher net worth, Lim has moved up two notches on the list of 40 richest Malaysians in 2017.
His wealth is pretty straightforward and lean. It is through a 36.4% shareholding in Top Glove that Lim owns most of his wealth, as the company is the world’s largest manufacturer and distributor of rubber gloves.
Apart from that, he also owns a 10.3% stake in Tropicana Corp Bhd, which is primarily involved in property development.
From just one factory and three production lines during its incep- tion in 1991, Top Glove has now captured 25% of the world market share and offers a diverse product range, which targets both the healthcare and non-healthcare segments.
Currently, the glovemaker serves a network of over 2,000 customers in more than 195 countries.
Last year, the stock had a good run, particularly in the second half of the year as it rose by 55% in 2017. Its market capitalisation stood at RM10bil as at Dec 31, 2017.
Following a long period of speculation in the corporate grapevine, Top Glove announced a few months ago that it would be acquiring Aspion Sdn Bhd from Adventa Capital Pte Ltd via a combination of borrowings and new shares.
The proposed deal also comes with Adventa providing a profit after tax guarantee of RM80mil for the financial year ending 2018, translating into a price-to-earnings multiple of 16 to 18 times.
The move to acquire Aspion, worth at least RM1.3bil, is said to be one of the biggest investments Top Glove has made since its initial public offering 17 years ago.
Post-acquisition of Aspion, Top Glove aims to position itself as a global leader in surgical glove manufacturing.
Being an export-reliant entity, the volatility in the global currencies, especially the ringgit and the US dollar, has a big influence on Top Glove. The weak ringgit in the past two years has been a boon for Top Glove, as its revenue is predominantly in US dollars terms.
However, with the ringgit gradually strengthening and breaching the RM3.90 per US dollar mark, concerns emerge on whether currency volatility will affect Top Glove, moving forward.
Lim has reportedly said that the strong ringgit is a boon, as it allows the company to proceed with its plans to further expand its production lines, as well as to go for mergers and acquisitions.
Bernama has reported that Top Glove is aiming to acquire between six and seven more companies, moving forward.